IDEAS home Printed from https://ideas.repec.org/a/sae/enejou/v37y2016i1_supplp87-110.html
   My bibliography  Save this article

Household Energy Demand in Urban China: Accounting for Regional Prices and Rapid Income Change

Author

Listed:
  • Jing Cao
  • Mun S. Ho
  • Huifang Liang

Abstract

Understanding the rapidly rising demand for energy in China is essential to efforts to reduce the country’s energy use and environmental damage. In response to rising incomes and changing prices and demographics, household use of various fuels, electricity and gasoline has changed dramatically in China. In this paper, we estimate both income and price elasticities for various energy types using Chinese urban household micro-data collected by National bureau of Statistics, by applying a two-stage budgeting AIDS model. We find that total energy is price and income inelastic for all income groups after accounting for demographic and regional effects. Our estimated electricity price elasticity ranges from -0.49 to -0.57, gas price elasticity ranges from -0.46 to -0.94, and gasoline price elasticity ranges from -0.85 to -0.94. Income elasticity for various energy types range from 0.57 to 0.94. Demand for coal is most price and income elastic among the poor, whereas gasoline demand is elastic for the rich.

Suggested Citation

  • Jing Cao & Mun S. Ho & Huifang Liang, 2016. "Household Energy Demand in Urban China: Accounting for Regional Prices and Rapid Income Change," The Energy Journal, , vol. 37(1_suppl), pages 87-110, January.
    • Handle: RePEc:sae:enejou:v:37:y:2016:i:1_suppl:p:87-110
    DOI: 10.5547/01956574.37.SI1.jcao
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5547/01956574.37.SI1.jcao
    Download Restriction: no
    File URL: https://libkey.io/10.5547/01956574.37.SI1.jcao?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. W. Alexander & Alfred Haug & Mohammad Jaforullah, 2010. "A two-stage double-bootstrap data envelopment analysis of efficiency differences of New Zealand secondary schools," Journal of Productivity Analysis, Springer, vol. 34(2), pages 99-110, October.
    2. Shenggen Fan & Eric J. Wailes & Gail L. Cramer, 1995. "Household Demand in Rural China: A Two-Stage LES-AIDS Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(1), pages 54-62.
    3. David L. Edgerton, 1997. "Weak Separability and the Estimation of Elasticities in Multistage Demand Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 62-79.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jing Cao, Mun S. Ho, and Huifang Liang, 2016. "Household energy demand in Urban China: Accounting for regional prices and rapid income change," The Energy Journal, International Association for Energy Economics, vol. 0(China Spe).
    2. Chris Moore & Charles Griffiths, 2018. "Welfare analysis in a two-stage inverse demand model: an application to harvest changes in the Chesapeake Bay," Empirical Economics, Springer, vol. 55(3), pages 1181-1206, November.
    3. Matthias Staudigel & Rebecca Schröck, 2015. "Food Demand in Russia: Heterogeneous Consumer Segments over Time," Journal of Agricultural Economics, Wiley Blackwell, vol. 66(3), pages 615-639, September.
    4. Christopher C. Moore, 2011. "Welfare Impacts of Ocean Acidification: An Integrated Assessment Model of the US Mollusk Fishery," NCEE Working Paper Series 201106, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Dec 2011.
    5. Wan, Guang Hua, 2005. "Convergence in food consumption in Rural China: Evidence from household survey data," China Economic Review, Elsevier, vol. 16(1), pages 90-102.
    6. Norman Gemmell & Patrick Nolan & Grant Scobie, 2017. "Public sector productivity: Quality adjusting sector-level data on New Zealand schools," Working Papers 2017/02, New Zealand Productivity Commission.
    7. Esso-Hanam Atake, 2017. "Sustaining Gains in Health Programs: Technical Efficiency and its Determinants in Malaria Programs in Sub-Saharan Africa," Applied Health Economics and Health Policy, Springer, vol. 15(2), pages 249-259, April.
    8. Mona Chitnis, Roger Fouquet, and Steve Sorrell, 2020. "Rebound Effects for Household Energy Services in the UK," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 31-60.
    9. Alfred A. Haug & Vincent C. Blackburn, 2017. "Government secondary school finances in New South Wales: accounting for students’ prior achievements in a two-stage DEA at the school level," Journal of Productivity Analysis, Springer, vol. 48(1), pages 69-83, August.
    10. Chitnis, Mona & Sorrell, Steve, 2015. "Living up to expectations: Estimating direct and indirect rebound effects for UK households," Energy Economics, Elsevier, vol. 52(S1), pages 100-116.
    11. Broberg, Thomas, 2014. "Relative income and the WTP for public goods - A case study of forest conservation in Sweden," CERE Working Papers 2014:6, CERE - the Center for Environmental and Resource Economics.
    12. Wang, Qingbin & Fuller, Frank H. & Hayes, Dermot J. & Halbrendt, Catherine K., 1998. "Chinese Consumer Demand For Animal Products And Implications For U.S. Pork And Poultry Exports," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 30(1), pages 1-14, July.
    13. Janda, Karel & Rausser, Gordon C. & McCluskey, Jill, 1998. "Food import demand in the Czech Republic," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt14j5p75j, Department of Agricultural & Resource Economics, UC Berkeley.
    14. Ma, Hengyun & Huang, Jikun & Rozelle, Scott & Rae, Allan N., 2003. "Livestock Product Consumption Patterns In Urban And Rural China," China Agriculture Project Working Papers 23689, Massey University, Centre for Applied Economics and Policy Studies.
    15. Kristof De Witte & Rui Marques, 2010. "Designing performance incentives, an international benchmark study in the water sector," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 18(2), pages 189-220, June.
    16. Rosario Crinò, 2010. "Service Offshoring and White-Collar Employment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 77(2), pages 595-632.
    17. Frank Denton & Dean Mountain, 2014. "The implications of mean scaling for the calculation of aggregate consumer elasticities," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(3), pages 297-314, September.
    18. Hongbo Liu & Kevin A. Parton & Zhang-Yue Zhou & Rod Cox, 2009. "At-home meat consumption in China: an empirical study ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(4), pages 485-501, October.
    19. Son Nghiem & Ha Trong Nguyen & Luke B. Connelly, 2016. "The Efficiency of Australian Schools: A Nationwide Analysis Using Gains in Test Scores of Students as Outputs," Economic Papers, The Economic Society of Australia, vol. 35(3), pages 256-268, September.
    20. Richard Ochmann, 2014. "Differential income taxation and household asset allocation," Applied Economics, Taylor & Francis Journals, vol. 46(8), pages 880-894, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:enejou:v:37:y:2016:i:1_suppl:p:87-110. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.